Term Life Insurance- The Basics

Online, February 2, 2011 (Newswire.com) - We at The Life Insurance Guide strive to provide the best, most informative information on Life Insurance. Our goal is to help the consumer have the knowledge they need to be secure in their financial future. Following is an example of the type of information that can be found on our website at http://thelifeinsuranceguide.org

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When you go to purchase life insurance, you are going to be given a whole bunch of terms and may have no idea what any of these mean. One term that many find confusing is term life insurance. This type of insurance is just one of many to choose from. When you purchase a term life policy, you will make a certain number of payments for a pre-determined period of time. This is known as the relevant term. Once the relevant term has ended, you will need to purchase additional coverage.

When purchasing term life insurance, the rate of your premium is guaranteed which is why many choose to go this route. Upon your death, your beneficiaries will be covered. This is the cheapest way to ensure you have the funds necessary to provide for your family or other beneficiaries should something happen to you. At one point in time, this was the main type of life insurance. Although this is not the preferred method of most when estate planning or giving to charity, it is helpful for those who are just looking to replace their income at the time of death. If you wish to spread out your investments to help protect your family, this is often the way to go. Purchase a term life insurance policy and invest the remaining funds in 401Ks or IRAs.

When choosing how much coverage to obtain, you may wish to do more than just replace your income. Some choose to purchase enough coverage to pay off consumer debt, college for the children and a home mortgage. This coverage may be changed as needs change. If you pay off your home or all of your children have completed schooling, you may wish to change your policy. Many like this flexibility which is not offered with other types of insurance.

When you purchase a term life insurance policy, your policy will cover any claims filed as long as the premiums are paid up to date and your contract is still in effect. If no claims are filed, your money will not be returned. This is a form of risk protection that many choose to purchase. Only you can determine if it is right for you.

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You can get a free quote today for your life insurance. Just visit http://thelifeinsuranceguide.org today!